4 Types of Insurance You Should Have

There are a number of insurance policies that cover almost everything, but there are 4 types of insurance plans that should be part of your financial strategy. These plans cover your health, your life and your possessions and not only offer you protection but also your loved ones.

Here are the 4 types of insurance that you should have.

Health Insurance

One of the most important insurance policies you should have is health insurance. Having good health allows you to work, earn money and just enjoy life.

If you were to fall to a serious illness or suffer in an accident and are not insured then you may not be able to get the treatment you need or end up in debt.

Many companies will offer employees health insurance benefits, so you should check what cover your company is offering and take advantage of this benefit. However, it’s still good to look at all your options and compare plans so you get the cover you need.

You will need to consider premium costs, co-payments, deductibles, covered expenses and network coverage to determine which plan offers the greatest benefits.

If you would like to find a health insurance plan then you are able to contact insurers directly or you can browse the internet. You will find websites that will source and find the best health insurance plans for you, which allows you to compare plans easily and choose the best deal with the benefits you need.

Life Insurance

Life insurance is vital if you are married or have children, but everyone is able to benefit from life insurance.

There are a number of needs that life insurance is able to meet. If you are married, for instance, then it is able to substitute lost income, pay your debts after you die or pay for your child’s education. If you are single then your life insurance can be used for your funeral costs and to pay off any debts that you may leave behind.

If you do not currently have life insurance then you should first check with your employer as many employers will offer a basic life insurance and you might be able to buy additional coverage at an affordable rate. Apart from your employer, you will find plenty of insurance companies that will offer the coverage you need.

You will need to consider if you should buy term or permanent life insurance. Term life insurance covers for only a specific time, which is usually between 5 and 30 years whereas permeant life insurance will cover for your entire life as long as you pay the premiums. This type of cover also allows you to build cash value that you can borrow against or invest for growth.

Term life insurance does offer flexibility and is cheaper, but permanent life insurance is the better choice if you are looking for an investment.

Your age and health will determine if you are able to get life insurance. The healthier and younger you are then the lower the cost. Also, as part of your application you will need to undertake a medical examination.

Wait…There are still two more policies you need…

Property Insurance

When you have a mortgage, you will need to have homeowner’s insurance. When you borrow money from a bank to buy a home then they will need the asset to be insured and for many people, the insurance premium will form part of the mortgage payment.

Your home will usually be your greatest asset so you will want to adequately protect it.

If you rent a property then you will need to get a renter’s insurance policy. The items inside your rental property can add up to a good amount of money. If you were to suffer from a theft, a fire or a disaster then you will need to have a policy that covers the cost of replacing these items.

Car Insurance

Another important insurance type that you need is car insurance and you will need to have at least basic car insurance that covers liability. If you are using a loan to buy a car with then you may need to add collision coverage to your policy. Liability insurance will cover damages to the other vehicle if you are involved in an accident and collision coverage will cover the damage to yours.

The main reason though for car insurance is its ability to replace an expensive asset. Your car costed money and if it’s get damaged you will want to be able to repair it or replace it.

Car insurance can also cover injury or death of another person involved in an incident that you are legally responsible for. It generally pays for medical expenses that are related to the incident and can also cover legal costs.

Car insurance will also have added on coverage that you can include in your policy, but just keep in mind that the more you add to your policy then the higher the premium will be.

These are the 4 types of insurance policies that you should have and if you don’t have them, you should start looking at these and getting quotes and comparing policies, so that you are able to choose the best policy for you and your budget.